NCLT Allows IMPPA Members' Oppression And Mismanagement Petition To Proceed, Rejects Plea To Dismiss Case

Mumbai, July 9, 2026: The National Company Law Tribunal (NCLT) has allowed a group of members of the Indian Motion Picture Producers’ Association (IMPPA) to pursue their case alleging oppression and mismanagement against the association’s office-bearers.

The tribunal rejected IMPPA’s request to dismiss the petition at the preliminary stage, ruling that the allegations raised by the members deserve to be examined in detail. However, the tribunal has not ruled on whether the allegations are true. It has only allowed the case to move forward for a full hearing.

Allegations Against IMPPA Management

The petition was filed by Sanjeev Kumar Singh and three other members, who accused the association’s management of financial and administrative irregularities.

They alleged that money was spent without proper approvals, the Articles of Association were violated, some office-bearers were suspended without following due procedure, and one member was prevented from obtaining approval for publicity material related to his film.

IMPPA opposed the petition, arguing that it did not have the support of the minimum number of members required under the Companies Act. It also claimed that some consent letters submitted by the petitioners were invalid or forged and sought dismissal of the case on that ground.

After hearing both sides, the tribunal said there were enough grounds to waive the legal requirement relating to the minimum number of supporting members. It observed that the allegations, particularly those concerning the suspension of members and possible violations of the Articles of Association, required judicial scrutiny.

Tribunal Finds Prima Facie Case

The tribunal, in its order, observed: “It is observed that such suspension is prima facie in contravention of the provisions contained in the Articles of Association (AoA). Further, the Respondent (IMPPA) submission in relation to cessation of membership of some of such consent providers on account of non-payment of their annual fees has been observed as contrary to the provisions of the AoA. This, in itself, indicates that the management of affairs of the Respondent Company, a non-profit company, is not being carried out in accordance with the provisions of the AoA. In these facts, the examination of allegations in relation to financial mismanagement also requires scrutiny, more so, when such allegations are alleged to be contrary to the decisions of the Executive Committee.”

The tribunal also noted that if the allegations regarding the functioning of the Section 8 (not-for-profit) company are correct, they would require corrective action. It stressed that such organisations must operate in accordance with their Articles of Association.

Further, the tribunal observed: “The allegations in relation to appointment of Sr. Vice President and authentication of financial statements are stated to be in contravention of other provisions of the AoA. These issues certainly make out a prima facie case of oppression and mismanagement in the case of a Section 8 company set up for non-profit motive. We are of the considered view that the affairs of a company, being a Section 8 company, cannot be allowed to run contrary to the provisions of its AoA, and have to be set right, if that is so.”

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Matter To Be Heard On July 24

Accordingly, the NCLT allowed the petitioners’ application seeking waiver of the statutory requirement, dismissed IMPPA’s application challenging the maintainability of the case, and fixed July 24 for further hearing of the main petition.

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